Question : On the basis of consumption function: C=180+0.6Y. Determine consumption at the income level of Rs.500.
Option 1: 500
Option 2: 480
Option 3: 300
Option 4: 600

Question

Question : On the basis of consumption function: C=180+0.6Y. Determine consumption at the income level of Rs.500.

Option 1: 500

Option 2: 480

Option 3: 300

Option 4: 600

Team Careers360 · Accepted Answer

Correct Answer: 480

Solution : $C=\bar c+b(Y)$

$C=180+0.6(500)$

$C=480$

$Hence, Option\, B\, is\, correct.$

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Question : On the basis of consumption function: C=180+0.6Y. Determine consumption at the income level of Rs.500.Option 1: 500Option 2: 480Option 3: 300Option 4: 600

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Question : On the basis of consumption function: C=180+0.6Y. Determine consumption at the income level of Rs.500.
Option 1: 500
Option 2: 480
Option 3: 300
Option 4: 600

Question : What is the value of MPC in the following consumption function

C= 200+0.90Y and also determinne consumption at income level of 500.